delta presentation2013.pdf

7/27/2019 Delta presentation2013.pdf

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1. WELCOME AND INTRODUCTION

2. FINANCIAL RESULTS

3. BUSINESS REVIEW

4. DISCUSSION/ QUESTIONS

5. REFRESHMENTS

Pearson Gowero

Matts Valela

Pearson Gowero

All

All


4/50

Completed all major capital programmes - $83m. Returnable Glass injection to the new calabash bottle.

Introduced non-returnable glass across the entire beerportfolio.

Successfully launched longer shelf-life Chibuku in PET. Localised Maheu production.

Achieved an improved market supply position across allbeverages.

Achieved significant improvement in productivity and costmanagement .

Negative impact of excise increase on lager beer.


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1. FINANCIAL HIGHLIGHTS

2. FINANCIAL STATEMENTS


7/50

Grew by 4%LAGER

Grew by 9%SBS

Declined by 8%CHIBUKU

Grew by 42%MAHEU


8/50

Up 8% to $352 millionLAGER

Up 14% to $231 millionSBS

Up 15% to $118 millionCHIBUKU

Up 50% to $11 millionMAHEU


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EBIDTA Up 36% to $161,5m

ATTRIBUTABLE INCOME Up 39% to $102,5m

Revenue (Gross Sales $740,2m) Up 14% to $631,3m

EBIT Up 37% to $135,0m

Operating Margin % Up from 20,48% to 24,73%

EPS Up 36% to 8,49c

Final Dividend

Total Dividend ($41,3m)

Up 78% to 2,23c

Up 63% to 3,40c


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281

408

555

631

0

100

200

300

400

500

600

700

F10 F11 F12 F13

REVENUE - $m


11/50

39

68

98

135

0

20

4060

80

100

120

140

160

F10 F11 F12 F13

EBIT - $m


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15.3

19.53 20.48

24.73

0

5

10

15

20

25

30

F10 F11 F12 F13

OPERATING MARGIN %


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EBITDA - $m

49

82

119

162

0

20

40

60

80

100

120

140

160

180

F10 F11 F12 F13


14/50

Category Actual Volume000hl

% Growth onPrior Year

1. BEVERAGES (HLS 000)1.1 Clear Beer1.2 Sorghum Beer

1.3 Sparkling Beverages1.4 Maheu

2 0603 080

1 615132

4(8)

942

Total Excluding Associates 6 887 0

2. Plastic Tonnages 9 451 27

3. Malt Tonnages 35 834 3


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MARCH 2013US$000s

MARCH 2012US$000s

REVENUE 631 276 554 767

Operating Income 134 989 98 288

Net Finance expense (574) (2 650)

Gain on Acquisition of Associates - 1 930

Associates Share of Profit 2 458 1 725

PROFIT BEFORE TAX 136 873 99 293

Taxation (32 750) (24 087)

TOTAL COMPREHENSIVE INCOME 104 123 75 206


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2013US$000s

2012US$000s

Profit for the yearattributable to:

Owners of the parent 102 472 73 747

Non-controlling

interests1 651 1 459

104 123 75 206


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MARCH2013

MARCH2012

From Operations

Normal EPS Cents 8,49 6,22

Fully Diluted EPS - Cents8,42 6,03

Dividend per share -Cents 3,40 2,08


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ASSETS2013

US$000s2012

US$000s

Non-current assets

Property, plant and equipment 319 241 268 470

Investments, loans and trademarks 30 598 28 133

TOTAL NON-CURRENT ASSETS 349 839 296 603

CURRENT ASSETS

Inventories 93 012 77 620

Trade and other receivables 43 999 37 345

Cash and cash equivalents 75 088 55 578

TOTAL CURRENT ASSETS 212 099 170 543

TOTAL ASSETS 561 938 467 146


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EQUITY AND LIABILITIES 2013US$000s

2012US$000s

Share Capital 12 230 11 927

Share Premium 24 049 19 553

Reserves 276 921 217 559Dividend Payable 27 270 14 901

Non-controlling Interests 6 780 5 129

Shareholders equity 347 250 269 069

Long- term borrowings 60 000 60 000

Deferred taxation 30 740 27 247

90 740 87 247

CURRENT LIABILITIESShort-term borrowings 18 605 21 381

Interest free liabilities 105 343 89 449

TOTAL CURRENT LIABILITIES 123 948 110 830

TOTAL EQUITY AND LIABILITES 561 938 467 146


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2013

US$000s

2012

US$000s

Cash flow from

operations165 112 121 391

Net cash invested (83 336) (77 137)

Net funding (3 517) (26 878)


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Shares in Issue as at 31 March

20121 192 105 715

Share Options Exercised 35 257 100

Share buyback (4 480 980)

Shares in Issue at 31 March 2013 1 222 881 835


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Target to improve Total Shareholder Return as measured by:- Revenue Growth- Margins- Cash

0%

14%

37%

63%

0%

10%

20%

30%

40%

50%

60%

70%

Volume Revenue Ebit Dividend


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1. Volume Review by Beverage category

2. Beverage Mix

3. Supply Chain/Enterprise Development

4. Associates

5. Capacity6. The Future


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HLS 000

538

1 148

1 608

1 981 2 060

0

500

1000

1500

2000

2500

F09 F10 F11 F12 F13


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HLS 000

308

770

1 175

1 4801 615

0

500

1000

1500

2000

F09 F10 F11 F12 F13


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HLS 000

1 673

3 1142 908

3 3543 080

0

500

1000

1500

2000

2500

3000

3500

4000

F09 F10 F11 F12 F13


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HLS 000

89 93

132

-20

40

6080

100

120140

F11 F12 F13


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1 815

4 550

5 796

7 196

9 451

0

2000

4000

6000

8000

10000

F09 F10 F11 F12 F13


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Mat North

2% Mat South

2%

Mash Central

5%

Manicaland

5%

Mash East

7%

Masvingo

8%

Mash West9%

Midlands

10%Bulawayo

10%

Harare

42%


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Mat North

2%

Mat South

3%Mash East

4%Mash Central

4%

Mash West

9%

Masvingo

9%

Midlands

11%Bulawayo

12%

Harare

46%


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Bulawayo

3%Mat North

5%Manicaland

5%

Mash Central

7%

Mash East

9%

Masvingo

15%

Midlands

16%

Mash West

17%

Harare

21%

Mat South

2%


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Volume performance reflects slowing GDP growth rate.

Soft drinks growth driven by increased investment in PET

and glass.

Sorghum volume affected by input cost induced pricing

and poor agricultural performance in 2012.

The Midlands and Mashonaland East showing faster

growth than other provinces mining generating

incomes.

Localisation of Maheu production drove volume

performance.

Clear beer affected by excise and retail price increase

from December.


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30%

46%

24%

F13

LagerSorghumSB's

29%

49%

22%

F12

Lager

Sorghum

SB's


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37%

63%

F12

LagerSorghum

40%

60%

F13

Lager

Sorghum


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0

500

1000

1500

2000

F12 F13

PremiumMain Stream84.4%

15.6%

81.6%

18.4%


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0

200

400

600

8001000

1200

14001600

1800

F12 F13

Convenience packRGB

28.4%

68.9%

31.1%

71.6%


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Revenue and margin driven by premiumisation in lager beer

and soft drinks and price correction in Chibuku

Maintained balance between mainstream and premiumcategory to avoid cannibalisation.

Maintained focus on economy segment with Eagle andChibuku.


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Focus on local sourcing Price/Quality

Barley Improved yields

Maize maximise local purchases by brewery

Other Inputs stable supply

CHALLENGES

Utilities water and electricity


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SZL (49%)

Profitability trending up.

Minute maid production

successfully localised andproduct acceptabilityencouraging.

Bottom end of the non-juice products -competitive.

AFDIS (30%)

Operating to plan.

Product availability and

innovation improving.

Recapitalisationprogramme underway.


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BEVERAGE

Lager Beer

Sparkling Beverages

Sorghum Beer

INSTALLEDCAPACITY

2,4m hls

2,4m hls

5m hls

Capex will be in containers, Chibuku Super and targeted at productivityimprovement.


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We remain a multi beverage businessdominating the beer, sparkling beverages and

sorghum beer categories. We extend into

adjacent territories directly (Maheu) or

through strategic investments (Schweppes -

Still and Afdis - Spirits)


49/50

1. Consumer disposable Incomes remain under pressure. Volume performance willreflect this, and growth although a focus area, will be a challenge in the first halfof the year.

2. Keeping our beverages affordable.

3. Meeting the aspirations of our premium consumers.

4. Bringing new offerings to the market via a carefully managed innovationpipeline.

5. Nurturing strong core brands.

6. Targeted and improved market execution.

7. Regional PCC Benchmarks highlight opportunity on beer, soft drinks and NonAlcoholic Beverages (NABs).

8. Opportunity in process and cost management.9. Ready to take advantage of any positive economic rebound.

10. Earnings growth to be ahead of GDP and inflation driven by - mix

- productivity


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THANK YOU

delta presentation2013.pdf

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